The $130 million (TZS 234 billion) project is a joint venture between the National Development Corporation (NDC), Tanzania Electric Supply company (TANESCO), and a private company, Power Pool East Africa Limited,
NDC owns 60% stake while Tanesco and Power Pool East Africa Limited own 20% each.
Speaking in Dar es Salaam, the NDC public relations manager, Mr Abel Ngapemba, said the Exim Bank of China was ready to issue a TZS 234 billion credit for project implementation after completion of financial closure.
Financial closure, according to financial experts is defined as a stage when all the conditions for a financial agreement are fulfilled prior to the initial availability of funds. "The project is set to start soon. We are just waiting for financial closure af the project agreement. As soon the financial closure is concluded, the project implementation process will commence", said the NDC spokesperson.
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| Ashegoda Wind Farm in Ethiopia. (File Photo) |
Financial closure is attained when all the tie ups with banks or financial institutions for funds are made and all the conditions precedent to initial drawing of debt is satisfied, according to the,.
In a Public Private Partnership (PPP) project, financial closure indicated the commencement of the Concession Period. The date on which financial closure is achieved is the appointed date which is deemed to be the date of commencement of concession period.
Formed in 2011, the Power Pool East African Limited is under a joint venture company known as Geo Wind Power Tanzania Limited (Geo Wind).
The ministry's statement has quoted the NDC head of energy infrastructure unit, Mr Pascal Malesa saying that the project with a target of connecting 50 megawatt to the national grid, was set to be completed early next year.
Source: The Citizen
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